Here you will find news, views, events and information relating to real-estate in Spain.

Used Property Prices Up Slightly in May

Used Property Prices Up Slightly in May
Used Housing Prices Up Slightly in May

Prices increased 0.2% in Andalucia in May

The price of used housing in Spain registered a monthly increase of 0.2% during May, according to data from idealista. This brings the average cost per square metre of used housing to 1,712 euros. Compared to May 2018, the annual variation is +5.8%, nationally.

The cities of Palma, Granada (both with +1.9%), and Santa Cruz de Tenerife (+1.6%) saw the greatest monthly increases.

The average price fell in 5 autonomous communities, as well as the autonomous city of Ceuta, with Navarra seeing the largest fall. There, prices fell by 1.3%. The largest increases amongst the autonomous communities were seen in Melilla, Valencia, and the Balearic Islands, all seeing prices increase by 1.1% during May.

Prices in Andalucía increased by 0.9% when compared to the previous month. Compared to May in the previous year, the increase was 4.9%. The average cost per square metre of used housing in Andalucía now stands at 1,553 euros. This is 19.3% below the historical maximum of 1,924 euros/m² seen in July 2006.

The Balearic Islands are the most expensive autonomy for second-hand housing with an average cost per square metre of 2,979 euros. Madrid (2,824 euros), and Euskadi (2,561 euros) follow as the next most expensive.

Castilla La Mancha (864 euros/m²), Extremadura (893 euros), and Murcia (1,015 euros) were the cheapest autonomies for used housing in May.


23 provinces registered higher used property prices in May, compared to April. The greatest increase was seen in Girona (2.9%), followed by Granada (1.2%), while Melilla, Teruel and the Balearic Islands all saw prices rise by 1.1%. Meanwhile, prices fell in Salamanca by 1.6%, followed by falls of 1.5% in Valladolid and Guadalajara, and 1.3% in Navarra.

The ranking of most expensive provinces is led by the Balearic Islands, followed by Guipúzcoa (2,923 euros/m²), and Madrid (2,824 euros).

Toledo is the most economic province with an average price of 760 euros per square metre. Cuenca is next with 788 euros, followed by Ciudad Real with 808 euros.


31 capitals saw second-hand housing prices increase. The most pronounced increase was experiences by the city of Palma, where owners increased prices by 1.9%. In Granada, prices of second-hand housing grew by 1.9%, while in Santa Cruz de Tenerife prices increased by 1.6%. Pontevedra, on the other hand, marked the biggest drop this month with prices falling by 1.4%. Other falls occurred in Valladolid (-1.1%), and Ceuta (-0.8%).

Prices increased by 0.2% in Barcelona and by 0.3% in Madrid.

San Sebastián is once again the most expensive city in Spain, with a price of 4,378 euros/m². Barcelona follows with an average price of 4,215 euros per square metre, with Madrid (3,820 euros) coming next.

Avila is the cheapest capital with an average cost of 997 euros/m², followed by Cuenca (1,024 euros) and Lleida (1,032 euros).


Málaga Airport Had a Busy April

Málaga airport increase in passengers
Málaga airport increase in passengers

Over 500,000 Brits visited Málaga in April

The Costa del Sol continues to attract visitors from around the world, as well as from around Spain, according to airport operator AENA.

In April, Málaga Costa del Sol Airport recorded 7.5% more flights and 7.6% more passengers than in the same month of 2018. Specifically, 1,827,586 travellers moved on 13,236 flights.

The vast majority travelled on commercial connections. Of them, 1.5 million were on international flights, representing an annual increase of 7.3%. The number of international flights handled by the airport also increased with 7.2% more.

Just over a quarter of a million travellers were moving nationally between Spanish cities, which contributed to a 10.3% increase in domestic passenger numbers. Likewise, the number of domestic flights increased by 8.4% to reach 2,429 operations, when compared to the same month last year.

The UK remained the main source of international travellers with 548,502 passengers. This is a 3.4% increase when compared to last April. Brexit may be having a negative affect on British property buyers but not on tourism, it seems. German travellers increased in number by 7.5% to reach 156,259, while the number of French travellers visiting Spain jumped up 19.5% to 119,715 passengers.

The busiest day of April was the 13th. On that day the airport registered both the highest number of passengers and also the highest number of flights. Specifically, on that Saturday the airport dealt with 72,399 passengers and 501 flights.

Year to Date

April’s growth maintains the positive flow seen so far this year. In the first four months of 2019, over 5.2 million passengers travelled through Málaga on 39,687 flights, showing increases of 7.3% and 5.2%, respectively, compared to the same period last year.

The increases are seen in both the domestic and international markets. So far this year there has been 4.3 million international passengers (+7%) moving on 29,514 international flights (+5.6%).

Domestic flights across the first four months of the year number 8,897, on which 885,772 passengers (+11.4%) travelled.


Mortgage Borrowing Increased in March

Mortgage Borrowing Increased in March
Borrowing for mortgages Increased in March

Homebuyers borrowed 3,850m euros in March

The number of new mortgages approved in March reached 30,716, an annual increase of 15.8%, according to data from the INE. The average amount of those home loans was 125,341 euros, an annual increase of 3.9%.

The total capital loaned for the purchase of a home in March reached 3,850 million euros. This represents an increase of 20.3% when compared to March 2018.

Looking not only at home mortgages but all new mortgage loans, the average amount borrowed was 146,544 which represents a 6.9% increase over last year. The value of all mortgages reached a staggering 5,951.8 million euros, which is a massive 23.6% more than last March.

Interest Rates

Looking at all mortgages taken in March, the average interest rate at the beginning was 2.58% (2.3% lower than March 2018), and the average term was 23 years. 60.6% of mortgages were on a variable interest rate and 39.4% on a fixed rate.

The average interest rate at the beginning of the loan term was 2.27% for variable rate mortgages (7.1% lower than in March 2018) and 3.24% for fixed rate mortgages (4.1% higher).

For mortgages taken for a home purchase, the average interest rate was 2.62% (0.1% higher than in March 2018) and the average term was 24 years. 58.1% of mortgages on housing were on a variable rate and 41.9% on a fixed rate. The number of mortgages on a fixed rate experienced a 24.5% increase on the annual rate.

The average interest rate at the start of the loan term was 2.34% for variable rate mortgages (a decrease of 2.7%). For fixed rate loans the average was 3.11% (1.6% higher).

Autonomous Communities

Madrid, Andalucía and Cataluña were the communities with the largest number of new home loans taken in March, with 6,102, 6,069 and 5,135, respectively.

The same three communities saw the highest total capital loaned, but in a different order. In Madrid, the total reached 1,063.4 million euros, followed by Cataluña with 764,4 million. Andalucía came third with 654.1 million euros borrowed.

Extremadura saw the highest annual variation rate in the amount of borrowed capital with a 41.3% increase. Murcia and Madrid also saw large increases with the amount borrowed increasing 37.5% and 33.1%, respectively.

The Balearic Islands saw the highest annual variation in the number of new home mortgages with a 49% increase. In Extremadura the number of home loans increased by 35.6%, and by 31.1% in Murcia.

The only communities with a negative annual variation rate were Aragón (-18.3%), Valencia (-2.1%) and Asturias (-1.6%).


Rental Costs Up Slightly in April

Rental Costs Up Slightly in April
Rental Costs Up Slightly in April

Cost of renting in Andalucia went up 1.5%

The price of rental housing in Spain registered a slight increase of 0.8% in April. This puts the average cost per square metre at €8.54 p/month. This figure returns us to similar levels seen in December 2009, when the average price was 8.55 euros p/month.

Looking at the year-on-year variation, we see an even smaller increase of just 0.1%. This is the smallest increase registered since March 2015 when the year-on-year cost of renting began increasing. It has not stopped rising since, except for August 2018 and January 2019 when there were small inter-annual decreases.

“The data continues to reaffirm the moderation in the growth of rental prices that we are seeing across the country, with the exception of the Community of Madrid, where prices continue to grow in double-digits,” explained Beatriz Toribio, director of studies at fotocasa.

Since reaching the maximum price in May 2007 (€10.12 p/m² p/month) the price of rental housing has accumulated a fall of -15.6%.

Price Rises in 15 Communities

There were rental price increases in 15 autonomous communities in April. The biggest increases were seen in La Rioja (4%), followed by the Canary Islands (3.5%), Cantabria (3.1%) and Galicia (2.9%).

The greatest declines in rental costs in April were seen in the Balearic Islands and Castila La Mancha with falls of 0.8% and 0.3%, respectively.

Looking at price ranking, Madrid is the most expensive community to rent a home in Spain, with an average cost per square metre of €13.69 p/month. It is followed by Catalonia (€12.65 p/month), Basque Country (€10.72 p/month) and the Balearic Islands (€9.99 p/month). Meanwhile, Extremadura (€4.35 p/month) and La Rioja (€4.72 p/month) are the two communities with the most affordable rental prices.

In Andalucia the price of property for rent increased by 1.5%, when compared to March.

Two Communities See Record Highs

The communities of Madrid and the Canary Islands reached new maximum prices during April. In Madrid the average cost reached €13.69 p/m² p/month, while in the Canary Islands it reached €7.77 p/m² p/month.

In the other communities, Catalonia is also close to a new maximum currently being only 1.9% below its recorded high. The Balearic Islands are also approaching record prices being only 5.7% the recorded maximum price.

39 Provinces Saw Price Increases in April

39 provinces recorded monthly price increases. The increases ranged from 0.1% in Ciudad Real to 10.1% in Huelva. In the nine provinces to see declining prices in April, the falls ranged from -0.1% in Badajoz and Barcelona to -7.8% in Huesca.

Looking at municipalities, Barcelona was the most expensive to rent a home in April with an average cost per square metre of €16.28 p/month, a monthly increase of 0.1%. Madrid was next (€15.32 p/m² p/month), followed by Calvià (€14.93 p/m² p/month) and Sant Cugat del Vallès (€4.69 p/m² p/month).


Foreign Buyers Still Flocking to Spain

Foreign Buyers Still Flocking to Spain
Foreign Buyers Still Flocking to Spain

Americans spend most on Spanish property

During the second half of 2018 there were 50,249 property sales to foreign buyers, an interannual increase of 1.4%. Furthermore, the figure represents 18.2% of the total purchases and sales made during those six months, according to the General Council of Notaries.

Between July and December transactions carried out by foreign buyers were concentrated in areas around the Mediterranean coast and both the archipelagos. The autonomies with the greatest weight of foreign purchases were the Balearic Islands (38.5% of sales to foreign buyers), Valencia (35.4%), the Canary Islands (33,9%), and Murcia (29.6%), all exceeding the national average (18.2%).

However, in most regions of the country purchases by foreigners accounted for 10% or less: Navarra (10.0%), Aragón (10.0%), Castilla-La Mancha (9.4%), Asturias (6.3%), Castilla y León (5.3%), País Vasco (5.0%), Cantabria (4.9%), Galicia (4.5%) and Extremadura (3.3%).

Significant yet slightly lower than the national average were Andalusia (17.8%) and Catalonia (17.4%). Meanwhile, La Rioja (11.0%) and Madrid (11.2%) were several points below the national average.

British and French Buy Most

By nationality, British buyers took the top spot accounting for 15.3% of sales to foreign buyers. French buyers, along with Germans and Romanians took the next places with 8%, 7.5% and 7.1%, respectively. “The recovery of activity from the British is consolidated, shown already in the second half of 2017, when the rebound from the Brexit fallout began,” said a notary spokesperson.

Looking at the prices involved in foreign purchases, the average cost per square metre of Spanish property was 1,748 euros, 1.8% more year-on-year. Non-resident foreigners paid more (2,080 euros p/m²) than residents (1,459 euros p/m²). This was due in part to their higher purchasing power and the type of housing they usually acquire.

The most expensive regions of Spain for foreign buyers are the Balearic Islands (average of 2,987 euros p/m²), Madrid (2,254 euros), the Basque Country (2,130 euros) and Catalonia (2,008 euros). “Price evolution indicates that, in the second half of 2018, the average price in which the buyer was Spanish grew more (+4.6%) than prices for resident foreigners (+2.7%) and non-resident foreigners (+2.7%),” said the notaries.

The nationalities that spend the most money on a house in Spain are the Americans (average of 2,426 euros p/m²). The Swedes followed (2,426 euros), and the Swiss (2,304 euros). It should be noted that those prices are the average between resident foreigners and non-resident foreigners.